Shree Cement on Thursday announced its foray into commercial power business and will invest Rs 1,200 crore in the next two years to set up a 300MW thermal power plant in Rajasthan.
“We have decided to set up a merchant power plant of 300 MW capacity at Beawar in Rajasthan. The company has earmarked an investment of Rs 1,200 crore for this purpose,” Shree Cement Managing Director, Mr H M Bangur said.
Mr Bangur said the company would sell the power generated from the plant in the open market and would not utilise it for captive purpose. The company would soon award the contract to develop the power plant and is currently having the final round of dis cussion with four firms - one each from the US and China and two domestic entities, he added.
On the source of funding the project, Mr Bangur said, “It will be a mix of internal accruals and debt. While INR800 crore will be utilised from our own resources, about INR400 crore will raised from lenders.”
The proposed unit, which is expected to start operation within the next two years, would be a thermal power plant and coal for the purpose would be fully imported, Mr Bangur said.